Commercial Metals Company (CMC) has agreed to acquire Concrete Pipe & Precast LLC (CP&P), a supplier of precast concrete solutions to the U.S. Mid-Atlantic and South Atlantic regions, from Eagle Corporation and ECPP LLC for a cash purchase price of $675 million, subject to customary adjustments.
“The acquisition of CP&P is an exciting step forward as we advance our strategy of delivering value-accretive growth by expanding CMC’s commercial portfolio in early-stage construction and increasing the breadth of our participation on the job site,” said Peter Matt, president and CEO. “CP&P is a leader in a large and attractive industry with strong, stable margins and cash flows. Through this transaction we will immediately establish a meaningful and highly scalable growth platform that enhances our ability to provide valuable solutions to our customers and positions CMC to better capitalize on the powerful long-term structural trends that we expect will drive construction activity for years to come.”
Precast capabilities will expand CMC’s commercial portfolio of value-added early-stage construction solutions with targeted customer groups and bring CMC onto the construction site earlier in the life of a project. The addition of these solutions meaningfully enhances CMC’s ability to participate in construction activity from site preparation to structural erection. In addition, precast capabilities enhance CMC’s ability to address construction industry challenges such as labor scarcity and project timelines and win greater adoption over time.
The acquisition establishes a highly scalable platform in a fragmented industry with strong margin characteristics. The top 10 precast suppliers comprise less than 25% of the domestic market, with only two national players and a relatively small number of sizable regional producers. These market dynamics provide CMC with a long-term runway for self-directed organic and inorganic growth by establishing regional operational footprints that benefit from scale in local markets.
